Teddy Sagi in talks to buy Sakal duty free

Teddy Sagi
Teddy Sagi

The market attributes Sagi's interest to his European ecommerce business.

Israeli billionaire Teddy Sagi is showing interest in additional retail activity in the local market; he is conducting negotiations to acquire the duty-free activity of Sakal. Sagi, who has achieved notable success with Internet companies and real estate business, is seeking to acquire Sakal's duty-free business for an estimated NIS 30 million.

Sakal conducts its duty-free business, which has a turnover estimated by market sources at NIS 200 million annually, through its Layam Sakal subsidiary. The duty-free business takes place at a number of stores, including the company's sports store at Ben Gurion Airport and other duty-free stores at Haifa Port, Ashdod Port, and the new airport at Timna.

The Sakal group, led by chairperson Solly Sakal, is active in footwear, clothing, duty free, and toys and holds a franchise for international fashion brands. The group was formerly a retail power but underwent one of the worst crises in the Israeli retail sector in 2005. Sakal Duty Free, which controlled a quarter of the electrical goods sector with a sales turnover of nearly NIS 1.5 billion, collapsed in a single day. At the time, Haim Sakal was vice-chairperson of the group, owned by his father Solly and his uncle Meir. Sakal made an enormous effort to pay all of its debts, repaying NIS 700 million to the banks over the past 10 years.

Sagi has ecommerce business in Europe; the market believes that this is one of the reasons for his interest in duty-free activity. "Globes" revealed last week that Sagi was in negotiations to acquire Shuk Tzafon from its founders and owners, Michal Ansky and Roy Hemed. Four years ago, Sagi bought part of Camden Market in London for £400 million (over $500 million). He later bought other parts of the market areas and in effect took it over.

Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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